The Central Board of Excise and Customs (CBEC) has lifted the freeze on the bank accounts of Kingfisher and Air India. This was done after both the airlines made part-payment of their service tax dues. The Board, earlier this month, froze some accounts of both the debt-laden airlines for defaulting on service tax payments, despite collecting the same from passengers.
According to sources, Kingfisher paid Rs 9 crore and Air India Rs 8 crore towards dues for the month of November. After this the freeze on the accounts was lifted, on Tuesday, they added.
Kingfisher has given a written “undertaking” that it will pay the remaining dues toward service tax by March 31, 2012. Kingfisher has total dues of Rs 110 crore for April-November while the national carrier had defaulted on the payment of Rs 310 crore for the same period.
Kingfisher's owner, Mr Vijay Mallya, had met the CBEC Chairman, Mr S. K. Goel, and requested a de-freezing of the airline's bank accounts. The Department reportedly asked him to pay at least the dues for the month of November.